My Movie, Your MoneyAn independent movie producer with a modest but loyal fan base is short of funds...

Question

My Movie, Your MoneyAn independent movie producer with a modest but loyal fan base is short of funds for her next movie. Knowing that a bank loan is an unrealistic option, she is considering crowdfunding. But she is not very familiar with it or how to go about starting and conducting a crowdfunding campaign.Prepare a report for the producer explaining the different approaches to crowdfunding, including the equity funding approach. Alert the producer to any drawbacks that might make people less willing to contribute to funding her movie and positives that might make people more likely to fund her movie. Conclude your report with a recommendation of which crowdfunding approach you believe would be most effective for this independent movie producer.As part of your preparation for your report, view the above videos and read the article from the text (pp XXXXXXXXXX):Is It Safe to Invest Through Crowd-funding?

Nitish Lath · Accepted Answer

A brief introduction to crowdfunding:
Crowdfunding is the source of finance in which the funds or capital is raised from a large number of individuals to finance a new or existing venture (Simone Johnson, 2021). In this case, the movie producer requires funds for her next movie and she is unable to raise funds through a bank loan. She is planning to raise the funds through crowdfunding and there are various approaches to crowdfunding. 
Types of crowdfunding and pros and cons of each type of crowdfunding:
There are mainly 4 types of crowdfunding i.e. rewards, debt, donation, and equity. Under donation crowdfunding, the people give money for nothing in return and the main objective of such funding is the growth of the business. 
The debt-based funding is known as peer-to-peer funding (P2P) which is like a bank loan and the amount should be paid within a defined timeline. The major advantages of debt funding are non- dilution of equity stake, the lower rate of financing as compared to equity financing, flexible interest rates, time horizon and fast turnaround of funds, and chances of diversification of investment.

My Movie, Your Money An independent movie producer with a modest but loyal fan base is short of funds for her next movie. Knowing that a bank loan is an unrealistic option, she is considering...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment